Bill Text: CA AB1467 | 2009-2010 | Regular Session | Amended
Bill Title: Natural resources: oil and gas operations: monitoring
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-02-02 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1467 Detail]
Download: California-2009-AB1467-Amended.html
BILL NUMBER: AB 1467 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 13, 2009
INTRODUCED BY Assembly Member Bass
FEBRUARY 27, 2009
An act to amend Section 3401 3106 of
the Public Resources Code, relating to natural resources.
LEGISLATIVE COUNSEL'S DIGEST
AB 1467, as amended, Bass. Natural resources: oil and gas
operations: charge on production. monitoring
program.
Existing law requires the State Oil and Gas Supervisor to
supervise the drilling, operation, maintenance, and abandonment of
wells and the operation, maintenance, and removal or abandonment of
tanks and facilities attendant to oil and gas production. Under
existing law, the supervisor may require an operator to implement a
monitoring program, designed to detect releases to the soil and
water, including both groundwater and surface water, for aboveground
oil production tanks and facilities.
This bill, instead, would require the supervisor to require an
operator to implement that monitoring program.
Existing law imposes an annual charge upon each person operating
or owning an interest in an oil or gas well in respect to the
production of the well which charge is payable to the State
Treasurer. Existing law provides that these charges shall be used
exclusively for the support and maintenance of the Division of Oil,
Gas, and Geothermal Resources in the Department of Conservation.
This bill would make technical, nonsubstantive changes to that
provision.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 3106 of the Public
Resources Code is amended to read:
3106. (a) The supervisor shall so supervise
the drilling, operation, maintenance, and abandonment of wells and
the operation, maintenance, and removal or abandonment of tanks and
facilities attendant to oil and gas production, including pipelines
not subject to regulation pursuant to Chapter 5.5 (commencing with
Section 51010) of Part 1 of Division 1 of Title 5 of the Government
Code that are within an oil and gas field, so as to prevent, as far
as possible, damage to life, health, property, and natural resources;
damage to underground oil and gas deposits from infiltrating water
and other causes; loss of oil, gas, or reservoir energy, and damage
to underground and surface waters suitable for irrigation or domestic
purposes by the infiltration of, or the addition of, detrimental
substances.
(b) The supervisor shall also supervise the drilling, operation,
maintenance, and abandonment of wells so as to permit the owners or
operators of the wells to utilize all methods and practices known to
the oil industry for the purpose of increasing the ultimate recovery
of underground hydrocarbons and which, in the opinion of the
supervisor, are suitable for this purpose in each proposed case. To
further the elimination of waste by increasing the recovery of
underground hydrocarbons, it is hereby declared as a policy of this
state that the grant in an oil and gas lease or contract to a lessee
or operator of the right or power, in substance, to explore for and
remove all hydrocarbons from any lands in the state, in the absence
of an express provision to the contrary contained in the lease or
contract, is deemed to allow the lessee or contractor, or the lessee'
s or contractor's successors or assigns, to do what a prudent
operator using reasonable diligence would do, having in mind the best
interests of the lessor, lessee, and the state in producing and
removing hydrocarbons, including, but not limited to, the injection
of air, gas, water, or other fluids into the productive strata, the
application of pressure heat or other means for the reduction of
viscosity of the hydrocarbons, the supplying of additional motive
force, or the creating of enlarged or new channels for the
underground movement of hydrocarbons into production wells, when
these methods or processes employed have been approved by the
supervisor, except that nothing contained in this section imposes a
legal duty upon the lessee or contractor, or the lessee's or
contractor's successors or assigns, to conduct these operations.
(c) The supervisor may shall require
an operator to implement a monitoring program, designed to detect
releases to the soil and water, including both groundwater and
surface water, for aboveground oil production tanks and facilities.
(d) To best meet oil and gas needs in this state, the supervisor
shall administer this division so as to encourage the wise
development of oil and gas resources.
SECTION 1. Section 3401 of the Public Resources
Code is amended to read:
3401. The proceeds of a charge levied, assessed, and collected
pursuant to this article upon the property of a person operating or
owning an interest in the production of a well shall be used
exclusively for the support and maintenance of the division of the
department charged with the supervision of oil and gas operations.
